Saturday, April 01, 2006

In a recent article in "Investors Business Daily", it was revealed that outsourcing has become more than just an easy way to cut costs. It has become a strategic tool that gives businesses flexibility and access to skilled personnel.

Since the advent of the Internet, and the rush to get online, software development companies have turned to outside professionals for services and solutions. Hiring a full-time software consultant is costly and not an efficient use of resources. Outsourcing allows companies to focus on their core businesses while gaining access to skilled labor when they need it.

* Outsourcing is a way to boost revenue* Outsourcing is a way to cut costs* Outsourcing eases labor shortages* Outsourcing cuts payroll costs* Outsourcing allows companies to focus on core competencies* Outsourcing reduces or eliminates some capital expenditures

Outsourcing also allows businesses to change their corporate culture. If companies have renegade groups that are costly, ineffective, or difficult to manage, that group can be outsourced. This enables employers to change their workplace environment on-the-fly.

Still, most companies outsource projects in order to reduce costs and to gain outside expertise. A survey by "The Conference Board" indicated the following "Top-10" outsourcing objectives (numbers are approximate):

When deciding to outsource your packaging, the real litmus test is whether outsourcing adds value. Does it really reduce costs? Is the investment in in-house training and machinery too great? Does outsourcing a service give you access to people with greater skill sets or companies with more resources available to them?

Bottom line: outsourcing your packaging service needs is about more than just saving money. It is a strategic option for savvy businesses and entrepreneurs.